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    HomeNewsBusinessStocksBuy Aurobindo Pharma; target of Rs 800: Axis Direct

    Buy Aurobindo Pharma; target of Rs 800: Axis Direct

    Axis Direct is bullish on Aurobindo Pharma has recommended buy rating on the stock with a target price of Rs 800 in its research report dated February 16, 2017.

    February 20, 2017 / 17:03 IST

    Axis Direct's research report onAurobindo Pharma

    Aurobindo’s (ARBP) Q3FY17 EBITDA (up 9% YoY) was 4% below our estimate. Gross/ EBITDA margin declined 180 bps/170 bps QoQ on increased price erosion of key oral solid products (gAbilify, gEntecavir) in US. While injectables grew over 80%, the growth could soften given withdrawal (post injunction) of isosulfan blue.

    Outlook

    We cut FY18/19E EPS by 6%/7% given increasing pricing pressure in US and higher R&D costs. We revise TP to Rs 800 (17x Dec’18) vs. Rs 860 earlier. While we expect near term pressure, we maintain BUY as we expect growth to pick up with increased capacity in FY18.

    For all recommendations, click hereDisclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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    first published: Feb 20, 2017 05:03 pm

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